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Transaction Announcement: Emerisque Capital Limited and S. Kumars Nationwide Limited

September 23, 2009 - William Blair & Company, L.L.C. acted as exclusive buy-side financial advisor and debt placement agent and advisor to London-based Emerisque Capital Limited and Mumbai-based S. Kumars Nationwide Limited in their crossborder acquisition of substantially all of the assets of Chicago-based Hartmarx Corporation pursuant to §363 of the United States Bankruptcy Code for approximately $125,000,000.

For several years, Emerisque had an ongoing dialogue with William Blair and Company's London office regarding Western consumer brands that could be expanded on a global basis. Shortly after Hartmarx filed for bankruptcy protection in January 2009, Emerisque approached the London team about the potential purchase of the Debtors. To address the complexities of a leveraged buyout of a business in bankruptcy, the London team added the Special Situations & Restructuring group and the Debt Capital Markets group to the transaction team. William Blair & Company then pitched and won the assignment because it could deliver integrated buy-side merger advice and debt-raising capabilities for a distressed business.

William Blair's engagement created credibility for Emerisque and its investment partner SKNL. The William Blair team used its expertise in the complexities of the US bankruptcy process as well as access to the US domestic lending market and knowledge of distressed lending to the retail sector. With William Blair’s assistance, the purchasers moved from a relatively unknown suitor to the court-appointed stalking horse bidder in the auction process.

Throughout this assignment, the Special Situations & Restructuring and Debt Capital Markets groups worked hand-in-hand. Both before and after being selected the stalking horse bidder, the debt team explored a full range of financing alternatives: traditional asset-backed loans, cash flow, mezzanine, second lien and factoring. The debt team arranged committed financing with a new lending group, a critical factor in the purchasers being appointed the stalking horse and ultimately winning the auction. Later in the process, after the transaction structure had been amended and Hartmarx’s financial position had deteriorated, the debt team negotiated a new lending arrangement with a lending group that included virtually all of the pre-bankruptcy lenders. Simultaneously, the Special Situations & Restructuring group negotiated with multiple parties – the Debtors, secured lenders, unsecured creditors and others plus their legal counsel and financial advisors – and worked with the purchasers’ other advisors to consummate the transaction.

Hartmarx manufactures and markets apparel for men and women primarily in the United States. The Hartmarx family of brands includes Hickey Freeman, Bobby Jones, Hart Shaffner Marx, Exclusively Misook, Barrie Price and Coppley. Hartmarx made a tuxedo, topcoat and suit for President Obama’s inauguration and a custom-tailored suit he wore during his election night events. Emerisque is a private equity firm in the United Kingdom with a track record of successful acquisition and turnaround investments in the consumer apparel industry. SKNL is public company, listed on the Mumbai Stock Exchange, operating in the textile industry in India and manufactures and distributes tailored and ready-to-wear men's and women's apparel.

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Media Relations Contact:
Tony Zimmer, 312-364-8611

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